Shares of Alibaba Group Holding and Baidu advanced in Hong Kong trading on Thursday after both companies confirmed partnerships with Apple to support the rollout of Apple Intelligence features for users in China.
Alibaba's Hong Kong-listed shares climbed around 5%, while Baidu gained nearly 4%, as investors welcomed Apple's decision to collaborate with leading Chinese technology companies to expand its artificial intelligence ecosystem in one of the world's largest smartphone markets.
The rally followed confirmation that Alibaba's large language model, Qwen, will be integrated into Apple Intelligence across iPhone, iPad, Mac and Vision Pro devices sold in China. According to the company, the integration will allow users to access advanced AI capabilities, including text generation, image understanding and content creation, directly within Apple's ecosystem without switching between multiple applications.
Baidu also confirmed that it is working with Apple to support Apple Intelligence features for iPhones in China, further strengthening the Chinese internet giant's position in the country's rapidly expanding AI market.
Investor sentiment received an additional boost after China's Cyberspace Administration officially approved Apple Intelligence as one of the country's licensed smartphone-based artificial intelligence services. The regulator also included several domestic AI platforms, including services developed by Huawei Technologies, in its latest list of approved providers.
The approval marks an important step for Apple as it expands AI-powered services in China while complying with the country's regulatory framework, which requires foreign companies to partner with locally approved AI providers.
The announcement comes as competition between the United States and China continues to intensify in the artificial intelligence sector. Both countries are investing heavily in AI technologies, while geopolitical tensions have resulted in tighter restrictions on advanced semiconductor exports and increased scrutiny of cross-border technology investments.
Separately, market attention also remains on Baidu's artificial intelligence chip business, Kunlunxin, following recent reports that the unit is considering an initial public offering in Hong Kong, a move that could significantly enhance the company's AI ambitions.
Analysts believe Apple's partnerships with Alibaba and Baidu highlight the growing importance of local AI collaborations in China, where regulatory requirements and domestic technology ecosystems are increasingly shaping the future of artificial intelligence adoption.
The positive market reaction reflects investor confidence that the collaboration could strengthen the competitive positions of both Chinese technology companies while accelerating Apple's AI strategy in one of its most strategically important markets.
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